Ethereum Sees Inflows Of $505M Into Binance, Sign Of Selling?

Keshav Verma

2 years ago

3 mins read

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On-chain data shows Ethereum has observed massive inflows of $505 million into Binance during the past day, a sign that selling may be going on.

Ethereum Exchange Inflows Have Shot Up During The Past Day

According to data from the on-chain analytics firm Santiment, this increase in the supply on exchanges is the largest observed since the day before the Merge. The “supply on exchanges” is an indicator that, as its name already implies, measures the percentage of the total Ethereum supply that’s currently sitting in the wallets of all centralized exchanges.

When the value of this metric increases, it means investors are depositing some coins to exchanges right now. This kind of trend can have bearish consequences for the asset’s price as one of the main reasons why investors transfer their coins to exchanges is for selling-related purposes.

On the other hand, decreasing values of this indicator imply a net amount of ETH is exiting these platforms currently. Such withdrawals can be a sign that the holders are accumulating the cryptocurrency, which can naturally be bullish for the asset’s value in the long term.

Now, here is a chart that shows the trend in the Ethereum supply on exchanges over the last few months:

Looks like the value of the metric has shot up in recent days | Source: Santiment on Twitter

As displayed in the above graph, the Ethereum supply on exchanges has observed a sharp rise in the past day, meaning that investors have deposited a large amount of ETH to these platforms.

In the chart, there is also the data for another ETH indicator: the “exchange flow balance.” This metric measures the net number of coins that are flowing into or out of exchanges, meaning that the exchange flow balance essentially tracks the changes happening in the supply on exchanges indicator.

During the past day, this metric has seen a large positive value, suggesting that inflows have far surpassed the outflows in this period. According to the metric, around 320,000 ETH ($584.6 million at the current price) has entered into the wallets of the exchanges with this spike.

This net increase in the exchange supply is in fact the largest that the cryptocurrency has seen since September 14, 2022, the day before the transition towards the proof-of-stake consensus mechanism took place.

Interestingly, the vast majority of the inflow spike has been contributed by just one transfer, as data from the cryptocurrency transaction tracker service Whale Alert shows.

🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 273,781 #ETH (504,986,096 USD) transferred from unknown wallet to #Binance https://t.co/WHqdlSQ5uB

— Whale Alert (@whale_alert) May 1, 2023

This transfer to Binance was worth almost $505 million, and it is one of the largest transactions between an unknown wallet and an exchange observed during the last five years.

It’s uncertain whether the whale has made this deposit with the intention to sell, or for using any other of the services offered by the platform. However, if selling is truly the goal here, then this massive inflow can be bad news for the asset’s price.

ETH Price

At the time of writing, Ethereum is trading around $1,800, up 1% in the last week.

ETH has gone down during the last couple of days | Source: ETHUSD on TradingView

Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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